2011 ANNUAL REPORT

Dublin Docks

Ordnance Survey Ireland (OSi)

ANNUAL REPORT 2011 Waterville, County Kerry Table of Contents

Mission Statement...... 2 OSi Vision...... 3 Highlights of 2011...... 5 Chairman’s Statement...... 7 Chief Executive’s Review...... 8 Mapping Production Review...... 10 Mapping Technology...... 12 Business and Marketing Review...... 14 Human Resources...... 18 Corporate Services...... 19 Financial Review...... 22 Appendix A – Functions of OSi as described in the OSi Act 2001...... 23

1 Ordnance Survey Ireland

Mission Statement

Excellence in providing quality mapping and spatial information services to meet society’s needs.

Mission achieved through People Values based on:

Responsiveness, Enterprise, Innovation, Efficiency, Results.

• Responsiveness – the ability to anticipate, adapt and meet effectively the changing needs of our customers

• Enterprise – continuously developing the skills and expertise to interpret, shape and meet the needs of the market

• Innovation – the contribution of our people in continuously seeking improvements in how we develop our products and services

• Efficiency – productivity and effectiveness to ensure our viability in a competitive environment

• Results – the organisational performance to deliver on our commitments and achieve quality outcomes for our stakeholders

2 OSi Vision

“Ordnance Survey Ireland, the National Mapping Agency since 1824, will continue to provide essential expertise to underpin the Social and Economic Development of Ireland.”

3 Aerial view of Blasket Island, County Kerry

Historic Mapping of Blasket Island, County Kerry

4 Highlights of 2011

Results at a glance:

• A good performance in a very difficult year

• Trading revenue was €19.5 million

• Surplus for the year relating to the Operations amounted to €2.2m

• Costs of Sales and Production down by 6%

• Administration and Distribution Expenses (excluding pension payments) down by 6%

• A dividend of 20% of Operating Surplus was declared.

Efficiency Improvements:

• Continued progress on organisational review and restructure

• Staff numbers recorded 276 at the end of December 2011, 1% below Employment Control Framework figure for 2011 and 5% below prior year.

• Developed the concept of a Centralised Administration Services to support HQ and all regional offices. This initiative will significantly reduce administration resources and improve overall efficiency.

Growing our business:

• Positive progress on new commercial business opportunities within the SME sector.

• Significant new/renewal contracts were agreed including Eircom Ltd., Railway Procurement Agency, Department of Environment, Community & Local Government, Department of Arts, Heritage & the Gaeltacht, Department of Agriculture, Food and Marine.

• Entered into a formal 49% shareholding agreement with An Post GeoDirectory with a positive profit return for 2011.

• Through conferences and workshops continues the promotion of the value of authoritative consistent OSi data to the bottom line – enabling better commercial decisions in the context of scarce resources and increasingly complex decisions.

• Outlined to citizens the value and importance of OSi data and its contribution to society using variety of channels e.g. website. Engaged young people on importance of geography/OSi through education system.

• In collaboration with Enterprise Ireland and a private partner company we developed and launched to the general public a new website call ‘’Decisionmap’’. This new website brings together authoritative data from a number of sources and through various analyses and visualisation techniques the output contributes to better planning and decision making.

5 Castletownbere, County Cork

6 Chairman’s Statement

This is my first Annual Report as Chairman of OSi and I am pleased to report OSi has made significant progress in 2011 to becoming a more streamlined and efficient organisation, which is facing the future with confidence.

Ronan O’Reilly Chairman, OSi Board

This is my first Annual Report as Chairman of OSi plan, we have recorded significant new business wins and I am pleased to report OSi has made significant ourselves and through our partners. We have reduced progress in 2011 to becoming a more streamlined operating costs considerably in recent years. and efficient organisation, which is facing the future with confidence. We have worked closely with many other arms of government in the challenges they face, from where The board is pleased to record a very strong we should build new schools to helping develop a performance despite the down turn in many of our new property tax. Geographic Information can help to traditional markets. deliver government services and OSi takes its remit in this area very seriously. OSi has faced and successfully dealt with a number of key challenges. In the face of a sustained economic I would like to thank the outgoing directors for the recession the CEO and her senior management time and energy they have given to OSi. In particular have worked diligently to ensure that OSi is now a I would like to thank my predecessor Mr. Kevin more effective and fit for purpose organisation. The Bonner for his dedicated service to OSi over 10 years recession in Ireland has been most pronounced in as Chairman during a period which has seen many the Construction sector, a very important traditional positive developments at OSi. market for OSi. OSi has had to adapt in an accelerated fashion to the new economic realities. This is not just In my first months as chairman of OSI I have been very a matter of reducing costs. impressed at how the team, ably led by Ms Geraldine Ruane the CEO, have risen to the many challenges that In addition to delivering a leaner and fitter organisation OSi is facing. Geraldine and her team have consistently the board is supporting a number of initiatives to delivered in very challenging circumstances and are broaden the markets that OSi operates in and to always planning ahead to anticipate future customer extend the products and offerings in our existing needs. markets. I am pleased to report our relationship with our parent In 2011 OSi offers a much enhanced range of services department continues to operate in a spirit of support to our customers than we did five years ago. We have and cooperation. developed new web based services responding to the needs of SME’s and we have entered into long-term I would like to thank the Minister for Communications, strategic partnerships to develop new products and Energy and Natural Resources, and his officials, for services at home and abroad. their constant support and encouragement.

The board is pleased with the progress that the team Finally I would like to thank everyone at OSi at OSi has achieved in these areas. for the welcome I have received since being appointed Chairman of OSi. The whole team is to In 2011, we have delivered on the jobs targets we were be commended for their hard work and their many set, we have made progress on our five-year financial achievements during this year.

7 Chief Executive’s Review

Ordnance Survey Ireland has had both a challenging and exciting year in 2011. Due to continued economic uncertainty, we have had to adapt our business in order to improve our overall performance.

Geraldine Ruane Chief Executive Officer

Ordnance Survey Ireland has had both a challenging The resulting downturn in major infrastructure and exciting year in 2011. Due to continued projects and in the construction sector has had a economic uncertainty, we have had to adapt knock on effect on our business. our business in order to improve our overall performance. OSi has managed its business This has also led to a fall in demand for consumer prudently by continuing to focus on efficiency while type products such as our tourism and leisure at the same time seeking out new markets and products. opportunities. The task of managing an organisation that is facing a

We delivered a surplus of some €2.2 million in 2011 difficult market, while at the same time transforming ahead of a target of €1.1 million. Staff numbers itself from a State Agency to a commercial enterprise were 1% below the target set by the government for has been challenging. We have adopted a twin track OSi and are in line with our five-year business plan. approach to restructure and organise ourselves more effectively while also seeking out new market We managed to further reduce operational opportunities. expenditure and bring in a saving of €2.7 million versus budget, a saving of 11%. Overall revenue was OSi today is a very different organisation than in down by 7.5% due in the main to a further downturn 2010. We have developed a partnership approach in construction and planning applications. to new business and are very encouraged, for example, by specific opportunities in advanced data In the last three years operational expenditure at OSi processing and aviation. has been reduced by 21%. We have looked at our routes to market and have Over the last five years we have delivered a consistently developed a new web based approach. We have resilient performance in the face of the toughest fostered a flatter organisation and cross team economic circumstances. Our operating surplus in working. We have encouraged new skill development 2011 at €2.2 million was ahead of pre–recession within our existing staff. performance, at €1.6 million deficit in 2008. We have focused on developing new offerings for Our commercial income in 2008 was at €22.3 million the smart economy and now have a range of web- and was 14% higher than our income in 2011. based services that are aimed at the SME sector. This figure masks the true reality as sales to the More and more business is seeking more intelligent construction sector were 65% down on 2008. Our data and especially geographic information. We are new business has helped to offset the effect on OSi. confident that the growth of this sector offers OSi a medium term opportunity. The performance of the economy, and more specifically the sectors in which OSi operate, We are engaging with government on new initiatives continued to be under significant pressure in 2011. such as postcodes and the proposed property tax.

8 We are hopeful that new projects in the infrastructure accomplish them all. We have achieved an operating may give a much-needed stimulus to the overall surplus by prudent and efficient management. construction sector, however we are realistic that We constantly strive to ensure that OSi is a fit for this will take time to filter through as public private purpose organisation. partnerships and planning will take some time. Our strategy was founded on a series of initiatives We have had some notable success in 2011. New that we have successfully delivered on; we have contracts were secured with the Department of worked to focus the mindset of the organisation Agriculture Marine and Food. Our GeoDirectory joint to focus on customers in the new commercial venture with An Post has secured a multi-annual environment. We have invested in infrastructure contract with Google and GeoDirectory, sales have and systems. Restructuring the organisation was grown by 95% over the past five years. imperative and the results show that this has worked. We have worked hard on the branding and We also secured a contract with the Irish Aviation reputation of OSi. We have developed a series of Authority to produce state of the art 3D aviation initiatives with our resellers, business partners and charts, an area where OSi is at the forefront in the customers that have resulted in new products and EU. joint ventures. The result of this journey is that OSi is now a robust commercially focused public sector One of our latest offerings, the web based Map Genie, organisation. is helping us to win new business from customers such as Savills, CBRE and Lisney. The future potential of OSi is vast and we see a number of opportunities over the next five years. We We see this market as a huge opportunity for OSi. can see the enormous potential of the Geographic OSi is a leading edge technology company, not Information Sector. We foresee OSi helping to deliver just a producer of traditional maps. Many of our new government service delivery. new business ventures are centered on our leading The technology position of OSi could be further position in the mapping and ICT sectors. The future exploited in becoming a broader shared services convergence of data and the many breakthrough centre for government. We envisage a future where developments in technology are creating a whole OSi becomes a Geographic Information hub for the new sector - the Geographic Information Industry. government and for the economy as a whole. 80% of databases in Ireland contain geographic We have continued to make progress and could not information. It is now possible through location- have done so without the support of our numerous based services to tailor a product or service offering business partners, technology partners and suppliers to customers in specific areas. Companies need to working with us through these challenging times. know where their customers are and need to know as much information as possible about them. The We value and appreciate the support of our parent growth of this global sector is exponential and is department, the Department of Communications, estimated to reach €14 billion by 2014. OSi is very Energy and Natural Resources. Indeed I would like well placed to benefit from these developments. to thank the many government departments and In 2011 we partnered with Enterprise Ireland and agencies with whom OSi collaborates. organised a workshop for Irish SMEs in this area, to which there was an excellent response. In conclusion, I wish to particularly thank my outgoing Chairman, Mr. Kevin Bonner and his In recent years OSi has had to adapt to very major fellow Board Members for their encouragement and market changes and pressures. Our traditional support over recent years. markets in construction and planning have experienced a once in a century downturn. I would like to express my deep thanks to my colleagues at Ordnance Survey Ireland for helping to I believe that we have consistently performed well in make us, the National Mapping Agency, the spatial very demanding market conditions. We set ourselves information provider of choice in Ireland. stretching goals and targets and are working hard to

9 Mapping Production Review

The role of the Mapping Production Department is to collect the primary geographic data that provides the basis for the creation of the mapping products for OSi customers in both digital and paper format.

The Mapping Production Department is structure has delivered savings of one Level 1 responsible for ensuring that the mapping Manager, one Level 2 Manager and one Team which the customer receives is both current Leader. and accurate. OSi has staff with an extensive range of skills, from traditional surveying and GeoDirectory cartography to postgraduates in GIS, IT and GeoDirectory is the definitive database of photogrammetric. OSi field staff members buildings in the Republic of Ireland. Jointly are equipped with the latest GPS surveying established by Ordnance Survey Ireland and equipment and field computers, which are used An Post, GeoDirectory identifies the precise to update the mapping on the field. address and location of every residential and The Mapping Production and Mapping commercial property in the State. Technology Departments collaborate to ensure OSi is responsible for the geographic element that the most efficient and effective methods of each address. The database now contains are used to collect new data and update the approximately 2 million buildings and mapping. The OSi flying team captures aerial 44,000 thoroughfare addresses. It has helped imagery, which is processed using aerial thousands of companies and organisations to triangulation. revolutionise the way they do business. Skilled photogrammestrists then plot real world features to update the OSi mapping. The Tourist & Leisure Mapping plotted data is passed to staff members who A commercially-important and ongoing part are skilled in the use of modern map editing of OSi’s business continues to be derived software for completion. Staff members are from the digital and paper products based on generally trained in more than one technology the large scale PRIME and national 1:10,000 and work on a number of these. topographical databases. These products 2011 reported a successful year in all areas fit into the following: the Ireland Series, the of revision. The Urban (1:1000) and Suburban Discovery Series, the City Series and the Town (1:2500) mapping of Ireland is now being Series. Customer needs in this sector are quite maintained within a one-year revision cycle; varied and include the generation of a variety the Peri-urban (1:2500) within a three-year of paper and digital products at various scale cycle and the Rural (1:5000) mapping is within and cartographic presentations. The most a five-year cycle. The updating and improving popular of these include The Official Dublin of the 1:10,000 database also continues in line City and District Street Guide, The Official Road with production and customer needs Atlas of Ireland and the Discovery Series, as well as a number of other products produced The management and team structures of the for specific sectors e.g. Fáilte Ireland and State Mapping Production Department were reviewed Examinations Commission. and reorganised during 2011. Management of the Regional Offices was re-organised on a The Discovery Series which runs to 75 separate North-South basis, and there was a merging of maps, covering every county in the State. The some of the teams in the Dublin Office affecting new look and style of the Discovery series has the 10k team, PD&P area, Database Management been applied to 43 of the 75 maps. The new and Geodirectory, and the formation of a single style will be applied to all maps by the end of Dublin revision office. The new management 2012.

10 Less apparent to many are the diverse products The role played by OSi and the Geographic that are produced to service specific needs of Information (GI) Industry certain customers, examples of this include There has been an organic evolution in the Euro Global and Euro Regional Maps for GI Computer Aided Design (CAD) industry to EuroGeographics. The Royal Irish Academy’s sophisticated Geographic Information Systems much-acclaimed annual publication “Historic (GIS). Arising from these developments, an Town Atlas” relies on OSi’s mapping; the Junior important change has occurred in the operating and Leaving Certificate’s Geography examinations business environment for spatial information rely on OSi data for the 190,000 maps required businesses such as OSi. The opportunities and and The Killarney and Donegal International demands for OSi that this industry development Rallies relies on OSi Mapping, with both drivers/ has given rise to include: navigators and visitors to these events depending on the accuracy of such maps. • Diversity in OSi’s portfolio of spatial products In the later stages of 2011 we engaged with Fáilte

Ireland and commenced a three year contract • Quality of product and service delivery for the production of on site and PDF “Looped walks mapping”. We continue to provide updated • Supporting infrastructure Town Maps to Fáilte Ireland as a map pad product • Confidence in our expertise specifically for their needs.

• Partnership with customers in addressing their business needs

OSi continued to meet these challenges throughout 2011 and ongoing initiatives will ensure it is well placed to provide the Irish GI industry with the quality of service it requires in the future.

Much of OSi’s continuing development is driven by its recognition of the need to build a solid and sustainable basis for the Irish Spatial Data Infrastructure (ISDI), consistent with these growing customer demands. Prime 2 will fully support OSi’s commitments to ISDI. Customers will experience significant better value for money when the Prime 2 database becomes available towards the end of 2012.

11 Mapping Technology Technology has a vital role to play in all stages of the creation, delivery and maintenance of geographic information in OSi. The role played by technology is to ensure that the organisation’s customers can avail of quality mapping products and services on a timely and cost effective basis.

2011 was another successful year for the OSi Mapping expert witness in a number of boundary related court Technology Department with the focus on continued cases. process improvement and the development of new products and services. The Department is made up of Communication Network Efficiencies three technology areas: OSi completed a number of significant network • Data Strategy & Development upgrades throughout 2011. These included a project • Information Technology with Eircom to increase capacity of our main internet • New Technology (Remote Sensing & connection from 100 to 200Mbps and links from Geodesy) regional offices to HQ upgraded to 20Mbps. Delivery of this project achieved a doubling of our network and internet capacity while reducing costs by one third.

Hardware Efficiencies & Energy Saving

With the aim of reducing server hardware costs and increasing availability – OSi continued its programme of further enhancing the VMWare virtual environment and completed the deployment of Microsoft’s System Centre 2007 (SCOM). The new alerting and monitoring features are central to the ability of IT Department to Next Generation Mapping (Prime2) proactively deal with server issues before they become Prime2 is the OSi data reengineering project to create a problem. By the end of 2011, 31% of the 130 OSi an industry standard seamless, scale independent core computer servers had been virtualised with plans to database for the integrated management of existing increase this to over 40% during 2012. large-scale, small-scale, boundary and address information. Cloud Computing

Throughout 2011 OSi continued its research into the Following the involvement of all key stakeholders, feasibility of using Cloud-based technologies for the including a series of customer workshops, the Prime2 provision of technical services and completed a first project commenced during 2011. A competitive phase Cloud prototype for the Demographic Web tender process was undertaken and the Prime2 data Services offering re-engineering contract was awarded to 1Spatial / RMSI. OSi Ecommerce Services

The project is divided into four stages covering the • Completed the close-out phase of the new period May 2011 to June 2013 - Phase 0 (Mobilisation eBusiness Suite project, this included the shutting and Proof of Process) was successfully completed down of the old eCommerce solution migrating all during the period May to August 2011 and Phase OSi customers to the new. 1 (Data Cleaning and Restructuring) commenced • Completed two significant upgrades to Biztalk and in September 2011 with the Data Cleaning module SQL server, improving stability effectiveness and completed on time by the end December 2011. increased customer satisfaction • Formalised a medium-term strategy for OSi’s Boundary Expertise & Advice eCommerce supply channels. The OSi Boundary Team continued to provide expert boundary advice and support to internal and external Webservices stakeholders including the Department of Environment, • Completed further development of the OSi Web Heritage and Local Government (DoEHLG). The Services in conjunction Sales & Marketing including Boundary Team also continued its role of independent a new Demographic Web Portal which is deployed

12 on Amazon’s Cloud for high availability. comprised Cork City and commercial contracts for • We completed a significant major upgrade to the Garmin and Limerick, Mayo, Meath, and Donegal underling architecture allowing OSi take advantage County Councils. of new features improving the service. • 2,275 high flown orthophoto tiles were produced • New mapping services were designed and from 2010 high flown imagery. deployed to assist analytic functionality for new • 3,473 map sheets of triangulated imagery were requirements under consideration. produced and made available to SDU for map update. Database Technology • 3,127 1m resolution tiles from 2010 and 2011 low flown imagery were supplied to the Department of • Oracle RAC a cluster database solution went live Agriculture as a contingency for their EU audit to for mapping production. This bolsters availability prevent large national fines. using two servers as a single processor with capacity to administer independently without Airport Modelling affecting service. • The OSi Elevation Database was fully populated • Terrain and obstacle data for two Irish airports, in 2011 covering major Cities and towns. A Shannon and Waterford, was captured to ICAO major upgrade undertaken has allowed us take (International Civil Aviation Organisation) standard advantage of new point-cloud data-types for the and supplied to the Irish Aviation Authority (IAA) storage of 3-D data. as part of the OSi/IAA eTOD (Electronic Terrain • OSi has expanded the business intelligence and Obstacle Data) project. (BI) services to enhance functionality for client departments assisting in production coordination Geodesy reducing dependency on previous manual • The ETRF89 coordinates of the OSI active GPS information transfers. network stations were re-adjusted to correct for the new European standard of absolute antenna Flying Operations phase centres. • The joint OSi/LPS (formerly Ordnance Survey of • Due to unsuitable flying weather conditions during Northern Ireland) EUREF IE/UK 2010 GPS network 2011 OSi’s high altitude flying contractor, Hansa re-computation campaign was submitted to EUREF Luftbild, was unable to capture any data. and was successfully ratified. • A total of 3,756 map sheets were captured for SDU • Two of the OSi Active GPS Stations were submitted map update and for Business & Marketing Low into the EUREF Permanent GNSS Network to Flown Orthophotos. contribute to European geodetic observations and • LiDAR flying during 2011 consisted of 29 projects analysis. covering approximately 3,770 square kilometres. • During 2011 a new ADS80 digital aerial camera was successfully installed and integrated into the flying operations flowline replacing the existing ADS40 digital camera. • 25 commercial LiDAR contracts, amounting to a total area of 3,410 square kilometres, were post processed, classified and supplied to Business & Marketing for output.

Digital Image Processing

• 356 low flown orthophoto tiles were produced. This

13 Business and Marketing Review The Business and Marketing Department plays a strategic role in ensuring that the spatial information needs of Industry and customers are understood and met by the organisation. This is particularly important considering that the spatial information industry within which OSi operates is undergoing significant and rapid change.

Stimulated by new technologies, policies, social through the OSi.ie website. Customers can view attitudes and access to terabytes of geographical and purchase maps and products online, such as information, people are changing the way they work, environmental reports, wind maps, tourist and leisure live and entertain themselves. products, maps for planning applications, land registry, ortho photography images, historic maps, from their In tandem, the expectations of OSi customers are workplace or from home. rapidly evolving and there can be little doubt that in 5 years the industry in which we operate will look very The addition of the printable planning pack in particular different. has provided additional benefits for our customers. This change has allowed OSi meet its customers The Business and Marketing Department is increasing demands for immediate and continuous responsible for interpreting and reporting on these online access to products. This has also helped OSi changes, striving to ensure that OSi’s data products alleviate problems for customers where local agents and services are recognised as a vital asset to both no longer exist. OSi has also provided online tutorials public and private sector, enabling better commercial on how to use our map viewer and online shop. decisions, modern government, increased efficiencies and delivering value for all citizens. MapGenie

The requirement to generate revenue for the MapGenie is an innovative new web service that organisation in accordance with the remit of the OSi provides flexible, online, immediate access to the Act and to conduct its business at all times in a cost- most complete and highest quality OSi map data effective and efficient manner is also a key driver for available of Ireland. MapGenie allows customers to this area. connect directly from their desktop across the internet to both OSi and Land and Property Services Northern Online Services Ireland (LPS) geographic data, giving easy and instant access to premium map data at a variety of scales from Today, users of location based information, products a single managed source. and services expect immediate on-demand access to the information required to support their decision making processes.

Recognising this OSi has made considerable efforts to change its data distribution channels for the benefit of its customers and the geographic information industry in Ireland.

In 2011 OSi enhanced its online shop by adding new products for architects and engineers, further developed its MapGenie web mapping service and launched a new innovative demographic web portal called DecisionMap.ie.

Online Shop The key drivers for MapGenie were to increase the value of OSi data to our customers by allowing Ordnance Survey Ireland’s website www.osi.ie is a customers much easier and quicker access to our popular mechanism for customers to research OSi data, saving them time, effort and costs. And to mapping, especially for professional users of maps. allow our industry partners to reduce the cost of data OSi objectives for its online shop are to make a wide management, enabling quicker project start-up times range of our products easily available to customers and the passing of those benefits in cost reductions

14 back to our shared customers. Sales Revenue

DecisionMap.ie In 2011, a 7% decrease in sales was recorded. The decrease principally relates to downward pressure on DecisionMap.ie was launched in November 2011 our products and services that are sold to support and is a demographic web portal that provides users planning applications, or the property, engineering with an intuitive and easy to use interface to view and construction industries and was very much in the latest statistical data with reference to OSi map line with the wider economic trends affecting the data and through ground breaking data visualisation industries in question. techniques. It uses OSi’s MapGenie web services to provide online, immediate access to the most This was somewhat cushioned by growth in other complete and highest quality map data available for sectors and the development of new markets and Ireland and Twelve Horses’s VIZI software application products and the securing of specific new contracts to simultaneously provide the data in a fast, dynamic during 2011. Many of these new contracts resulted and intuitive visual interface. from a change in the strategic approach to business development and on offering business solutions The aim of the demographic web portal is to provide to SME’s rather than driven by the take on of new national coverage data, to allow users to quickly corporate customers. identify key patterns, trenda and expectations and drill-down to the detail required for effective decision- In addition the Business and Marketing Department making. By directly associating itself with the use also sought to add value to its offerings via customised of authoritative data in this way OSi aims to meet its map products, new Web Services, LiDAR and communication challenges and objectives for 2011. Orthophotography, all as a means to offer customers higher value products from a single source. Serving Our Customers Listening to our customers OSi divides its business into distinct vertical market segment based on product requirements and industry With the general move of more of OSi’s business into focus; they are supported by different customer online channels OSi sought our customer’s views service channels. During 2011 a number of important about the existing online shop in an extensive survey initiatives were undertaken to develop commercial in the hope of learning more about what our customer opportunities within the Private and Public sectors. are looking for and how we can improve OSi service offerings. Many of these initiatives were based around delivering web based mapping services and applications for In tandem, the development of a wider customer customers. The use of OSi data within standard off the base in different market segments continues to be shelf Geographical Information Systems (GIS) enables a key strategic objective of the organisation and is our customer organisations to make better decisions, being achieved through a policy of harnessing the achieve cost savings from greater operational technical capability to deliver on the business needs efficiencies, it provides for better resource optimisation of customers and by working in closer co-operation by allowing for better analysis and prioritisation of with our partners to target niche markets that OSi investments or projects. Once again, in the current cannot reach alone. market we are finding that it is often necessary for OSi The examples given below illustrate how OSi’s to offer increased support to customers by running range of digital products and services offer benefits proof of concept projects to enable customers to and opportunities for its very varied customer base build business cases around the development of GIS operating across a number of key market sectors. solutions for these opportunities to be realised.

15 Our Key Sectors organisations to access key statistical information regarding key health issues and the system can perform Government statistical calculations and then display this information on OSi maps, charts or tables. Effective policy and planning is dependent on the ability to analyse disparate sets of information. Accordingly, Utilities - Gas, Electricity and Telecommunication integrated databases with a location context are crucial in providing faster data analysis and, ultimately, cost Geographic information plays a key role in asset savings and increased efficiencies. management, which is effectively the need to provide and monitor physical infrastructures and implement The following examples illustrate the effectiveness and required changes and replacements, including the need use of such databases: to manage repair and maintenance teams ensuring the efficient use of available manpower resources. The National Parks & Wildlife Service (NPWS) is part of the Department of the Environment, Community and The OSi’s geographic data enables utility companies Local Government and is charged with the conservation to increase operational efficiencies, to respond to of a range of habitats and species in Ireland. Some emergencies in a quick and effective way, and to provide of their important activities include designation and an efficient and cost-effective service to customers. protection of Natural Heritage Areas (NHAs), Special Areas of Conservation (SACs) and Special Protection The following example illustrates the effectiveness and Areas (SPAs) and managing and developing our use of such data: National Parks and Nature Reserves. The NPWS manage Bord Gáis Network integrates their network information their responsibilities, and implement / report on EU with OSi digital mapping for analysis and planning directives on behalf of the Irish Government using OSi purposes. The gas network is displayed and cross digital mapping within a GIS and provide a public face referenced with geocoded location information and for this information via their associated websites. customer address databases. This gives the users Health and Emergency Services rapid access to up-to-date network information across the entire organisation, which results in significant OSi data plays a very important role in facilitating the savings for the organisation, and the development of work of the emergency services, the Gardaí and health new applications and services and increased support professionals. From highly detailed street level mapping for customers. to an accurate overview of a region, OSi’s digital information data provides vital location intelligence in Education a number of key areas. OSi paper maps are used in schools in connection with The following example illustrates the effectiveness and the teaching of the school geography curriculum. use of such data: They form a core part of the teaching of this subject Health Atlas Ireland integrates OSi digital mapping and in State examinations up to and including Leaving statistical components within an online GIS. The key Certificate level. In 2011 OSi continued to support feature of the Health Atlas Ireland is a user-friendly the “Science in Action” programme where lessons are interface that supports web-enabled access across developed around mapping technology, to enable the Irish health sector and collaborating agencies. practical teaching of science in the secondary school Grant aided by the Health Research Board, the Atlas is level. OSi connects with younger students in the custom built by the public health sector in partnership classroom through competitions and interactive games with two universities. The system is deployed at Higher on www.osi.ie, which has a specialised education section, Education Authority Network (HEANET) which provides giving the younger generation an understanding of the secure access, over the public Internet, to all public importance of what OSi does as an organisation. sector and private agencies. It allows individuals and

16 At a tertiary level OSi is also involved with most major We aim to manage all communications to ensure we universities, including UCC, DIT and the StratAG are consistent in our approach to the market. All research cluster based in NUI Maynooth. OSi acts a events, advertisements, sponsorships are planned and Partner Organisation for StratAG offering data to third linked where possible to maximize our exposure to the level research programmes, which are funded by Science market thus leading to efficient management of time Foundation Ireland. This research cluster involves and resources. many other Universities in Ireland, with the focus being on topics which relate to geospatial sciences and OSi initiated a website redesign project, with a research. completion data of Q1 2012. The main focus of which was to highlight the map viewer which has become a Agent Network significant source of information for visitors allowing them view aerial photography and historic mapping 2011 saw further contraction of the OSi network online and order OSi online products. This has assisted of Place Map Agents due to continued low levels of the return rate of visitors which stands at approximately business making for difficult trading conditions. Despite 40%. Other objectives include raising profile of the being another challenging year, OSi network of Place organisation, to provide relevant information to Map Agents play a vitally important role in providing customers and to use the website as a key listening tool a localised service for OSi’s customers by selling for our customers. OSi also initiated Adword campaigns OSi products, primarily the PLACE (Planning, Legal, in support of our online products and launched a social Agricultural, Construction and Engineering) Maps. media presence to help us connect with specific user groups. Presently OSi has a Facebook page, a Twitter This sector has embraced the new format digital account and a YouTube Channel. planning pack, introduced in 2008 and is starting to look for other digital information which OSi can supply Prime 2 such as orthophotography.

Marketing The Business & Marketing Department also contributed to the on-going Prime 2 project by working with In order to maximize return on investment on our customers, application providers and value added marketing budget OSi operates an Integrated Marketing resellers to identify the acceptability of the proposed Communications Plan, the objective of which is to Prime2 data schemas and report customer feedback on coordinate all communication activities and channels so the Prime2 model and schemas. we can deliver a consistent message about OSi and all its products to the market.

17 Human Resources

The Human Resources (HR) area plays an important role in the realisation of OSi’s business strategies, by working closely with line management in all departments to facilitate the development and implementation of appropriate policies and initiatives aimed at securing a skilled, flexible and highly motivated workforce, fully capable of responding to the demands facing the organisation.

2011 proved to be another challenging year for Human The Human Resources area in its role of advising staff Resources, with an extra-ordinary interest in pension of policies and procedures introduced workshops calculations/estimates in advance of the grace period in 2010 and continued these workshops in 2011 to end date of February, 2012. Union negotiations on allow time to revisit the OSi Employee Handbook and Croke Park proposals also continued for most of to discuss issues that are of concern to HR. It is HR’s the first half of 2011 and agreement was reached in intention to follow up all new policies, or revision mid 2011. This led to the elimination of outdated of polices with workshops to ensure that there is practices in Ordnance Survey Ireland and also saw the understanding with all staff. introduction of consistent hours of attendance and revised core hours across the organisation. 2011 also saw the introduction of the Management of Sick Leave Circular, and all Managers were briefed on In line with the HR Strategy 2010 – 2015, 2011 saw the their responsibilities under this Circular with regard development and implementation of a comprehensive to return to work interviews and sick leave reviews. training plan and a Senior Management Team coaching Absence management is a strategic objective of OSi and mentoring pilot was completed in the latter half and this is managed by the HR Team. A significant of 2011. A full Senior Management programme is to metric is time lost due to sick leave. be rolled out in 2012. Requests for Tenders for the A revised Worksharing circular was also introduced. following programmes were also issued: Information sessions were held with all staff for the • Leadership Development Programme introduction of a payslips on-line facility which went • Personal Development live in January 2012. • Sales & marketing Training. 2011 also saw our engagement with redeployment Provision of PMDS support was provided by Human across the civil and public service with 15 staff Resources throughout 2011. The management volunteering to be placed on the Redeployment of performance is an integral part to the overall Resource panel. One staff member redeployed during management of People in OSI. Under the provisions laid 2011. down in the Performance Management & Development System (PMDS) managerial and supervisory staff must ensure that their people are informed of what is expected of them as well as being provided with feedback on how that work performance is progressing. The PMDS contributes to continuous improvement in performance through adhering to the following precepts:

• Aligning individual and team performance with the goals of OSI • Provides clarity in setting objectives and related performance targets for individuals and teams • Provides a mechanism for monitoring progress

18 Corporate Services Corporate Services plays the lead role in ensuring the that the organisation’s obliga- tions under Code of Practice for the Governance of State Bodies and related governance legislation are complied with. Responsibilities of Corporate Services include providing the Secretariat and administrative support to the Board, co-ordinating the Risk Manage- ment process, developing and managing all Health & Safety practices and procedures and managing accommodation services.

Corporate Governance Ryan and Mr. Pat W. Fenton and is chaired by Mr Liam Egan. The Committee met on six occasions during Following the publication in 2009 of the Revised 2011. From April 2011 the committee was chaired by Code of Practice for the Governance of State Bodies, Mr. Noel Ryan as the term of board membership for OSi examined its governance procedures to ensure Mr. Liam Egan was completed. Mr. Pat W. Fenton also compliance with the revised Code. completed his term of board membership.

In addition, the Corporate Services Department The minutes of all meetings of the Audit committee ensures that the provisions of the Ethics in Public are circulated to all members of the Board and to the Office Act 1995 and the Standards in Public Office Act CEO. In addition, the Chairman of the Audit Committee 2001, as they apply to Board Members, senior officials provides the Board with updates on issues at all Board and any designated positions in the organisation, are Meetings. The Audit Committee has access to any uniformly applied and fully complied with. required external expertise to facilitate the effective discharge of its responsibilities. OSi Board and its sub-committees Following an analysis of the Audit function by Farrell • OSi Board: Grant Sparks, a Head of Internal Audit was appointed to direct the work of internal audit at OSi in February The Board of Ordnance Survey Ireland comprises 2011. 10 members appointed by the Minister for Finance under the provisions of the Ordnance Survey Act • Capital Expenditure Committee: 2001. During 2011, the Board met on ten occasions including a meeting to specifically discuss and review Established to evaluate any proposed capital projects the corporate strategy of the organisation. where the expenditure either will or is likely to exceed €250,000, this committee met once in 2010. • Audit Committee: Membership of the committee comprised Mr Kevin Bonner as Chairman, Liam Egan, Anthony Murray, The Audit Committee of the Board comprises Board Liam O’Farrell and Rory Scanlon. Members Mr. Liam Egan, Mr. Anthony Murray, Mr. Noel

Board Member Fees

The annual fee payable to the Members of the Board for 2011 is in accordance with the rate approved by the Minister for Finance. This fee was reduced in accordance with the Financial Emergency measures in the Public Interest (No 2) Act 2009 with effect from January 1st 2010, the revised rates are as follows:

• Chairman: € 11,970

• Board Members (9): €7,695 each

In addition, Board Members received a total of €13,304 in expenses in respect of attendance at Board Meetings. A breakdown of this expenditure is as follows:

Mileage Subsistence Total Geraldine Stafford €2,312 €687 €2,999 Noel Ryan €4,905 €525 €5,430 Patrick Fenton €1,025 €252 €1,277 Rory Scanlan €222 €222 Liam Egan €542 €109 €651 Anthony Murray €2,524 €27 €2,572 Kevin Bonner €153 €153

19 Attendance at Board meetings

During 2011, the Board met on ten occasions and on one further occasion to specifically discuss and review the corporate strategy of the organisation.

Board Member Number of Meetings attended

Kevin Bonner, Chairman 10 Anthony Murray 10 Liam Egan (Retired 3rd March 2011) 1 Liam O’Farrell 1 Geraldine Stafford 9 Michael Hayes (Retired 3rd March 2011) 1 Noel Ryan 10 Patrick Fenton (Retired 3rd March 2011) 2 Rory Scanlon 6 William Attley 8

Three members retired on 3rd March 2011 i.e. Liam Egan, Pat Fenton and Michael Hayes.

• Remuneration of Chief Executive: Corporate Health & Safety

The Chief Executive, Ms Geraldine Ruane, is Ordnance Survey Ireland recognises its responsibility remunerated under the arrangements applicable with regard to the safety, health and welfare at work to the CEOs of commercial state-sponsored Bodies of all its employees and members of the public who (HAY). may be affected by its operations. The Health & Safety Committee, comprising both staff and management Details of the specific remuneration in 2011 are representatives, met on a number of occasions, contained in the Financial Statements. reviewed documentation, procedures and practices with a view to furthering safety awareness within the organisation. In 2010, the incoming committee Risk Management completed a comprehensive training programme provided by OSi’s Health and Safety Consultants. • The Risk Management process: Through the monthly Health and Safety reporting OSi continues to develop its Risk Management structures for Team Leaders that have been put in processes, including the organisation’s Risk Register. place, Health and Safety is discussed at team meetings This Register records and indicates the range of on a regular basis, thus ensuring that awareness and measures necessary, either on-going or once off, to compliance for Health and Safety rests at team level. mitigate the diverse range of risks identified. Senior Managers have responsibility for the monitoring and All OSi offices have been equipped with defibrillators management of their own risks and are required and training and monitoring of this equipment to provide regular progress reports with planned continued during 2010. mitigation measures and to report additional risks as they arise. Facilities and accommodation management

Maintenance of accommodation The Audit Committee of the Board and the Head of • Internal Audit, who reports directly into the Audit The management of the accommodation at the OSi HQ Committee routinely receive and monitor the Risk complex in the Phoenix Park and at the six Regional Register. The Board is advised of the key risks Offices (Cork, Ennis, Kilkenny, Longford, Sligo and prevailing at the end of each quarter or more often Tuam) presents its own challenges. where a particular serious risk arises or is imminent.

20 The headquarters complex comprises of a number of In 2011, OSI consumed 2,970 MWh of energy, magnificent buildings, some dating from the 1700s consisting of: and located on more than 17 acres. This presents a significant challenge when even routine maintenance 1,469 MWh of electricity work requires that the fullest consideration be given to avoid any possible adverse implications for these 700 MWh of fossil fuels listed, protected structures. 801 MWh of vehicle fuels During the course of 2011, scope for remedial works programmes was severly limited by the current Actions Undertaken in 2011 economic situation. However with the assistance of In 2010 Corporate Services undertook a range of the OPW, care and maintenance programmes were initiatives to improve the overall energy performance undertaken to secure building structures in the of OSi. These initiatives included: Head Office area. In addition with the assistance of the sustainable Energy Authority of Ireland (SEAI) a • A new on line system was implemented to comprehensive survey of Head Office buildings was help risk mitigation undertaken with a view to minimising energy usage. • Embedded the process of “Monthly Health & In light of the reducing staff numbers in all work Safety Reporting” within the team leaders. centres, OSI engaged with the Office of Public Works • Developed a phased accommodation plan to identify where space allocations could be revised to for OSi HQ with a number of relocations achieve cost savings. completed in 2011. • Continued the organisation focus on energy/ Ordnance Survey Ireland recognises that the water conservation programmes. professional assistance and guidance of the Office of • Completed the development phase of a Public Works is critical to bringing success to these Centralised Administration Service Function. remedial projects. It is important that in any annual review there is an acknowledgement and appreciation Actions Planned for 2012 expressed for the level of resources and professional In 2012 it is planned to improve performance by: expertise afforded by the Office of Public Works to • Implement the Centralised Administration OSi in the management of its unique accommodation Service Function issues. • Capture energy savings in light of reduced • OSi and Corporate Responsibility employee numbers. • Advise and assist in the Government Reform Ordnance Survey Ireland continued to implement plan as announced in 2011. the measures/initiatives which are considered to • Investigate Shared services options with other have a positive impact on the organisation’s “Carbon agencies. Footprint” in reducing inefficient energy usage. OSi continues with programmes such as eWorking and the “Cycle to work scheme” to reduce car journeys on an In addition OSi will be engaging in a partnership individual level. with SEAI to examine ways to further reduce energy consumption at OSi HQ and across the motor fleet. At corporate level it has conducted a number of actions as detailed below.

• Continuation of overview of Energy Usage in Ordnance Survey Ireland which commenced in 2010

21 Financial Review Trading revenue for year ending 31 December 2011 recorded €19.5m, representing a decrease of 7% over 2010. In a very challenging economic environment a number of new initiatives were completed to help stimulate growth such as the development of Web services as a business offering with over 90 customers, the promotion and development of the OSi on-line shop to the public, the launch of the new Dublin Commuter Map and the Failte Ireland activity maps. The slowdown in the construction sector continued during 2011 with sales of planning related products down 7% on the previous year’s revenue base of €1.8m distributed over our Agent network, Head Office Shop and the Public Website.

In general, prices remained stable and a number of significant new/renewal contracts were agreed including Eircom Ltd., Railway Procurement Agency, Department of Environment, Community & Local Government, Department of Arts, Heritage & the Gaeltacht, Department of Agriculture, Food and Marine. A successful launch of a Web Service product facilitated entry into the small and medium size private business market and resulted in a promising initial order pipeline. In addition, the new public website recorded sales of €0.5m returning a growth in excess of 100% and provided customers with the option to view and purchase current products such as Environmental Reports, Ortho photography, Wind Mapping, Land Registry Compliance Maps and Digital Planning packs.

Copyright licence revenue within the private sector, representing in excess of 1,250 customers, continues to suffer from the economic downturn and declined by 14% over the previous year on a revenue base of €0.7m and following a 11% decline in 2010. However this area continues to be maintained at a good level as professionals and members of the public recognise the value of authorised copying of maps within the business environment.

Ordnance Survey continues to maintain all public interest mapping and services at a high quality level as outlined in the Ordnance Survey Ireland Act, 2001 and further detailed in the Service Agreement with the Minister for Communications, Energy and Natural Resources.

Ordnance Survey Ireland agreed to formalise a long standing partnership arrangement and purchased a 49% shareholding in An Post GeoDirectory Limited effective 27th September’2011. Profits for this minority interest shareholding amounted to €20K in 2011.

Operating Costs

Cost of Production and Sales amounted to €14.5m, representing a €0.9m or 6% decrease on the previous year. Changes of note included Salaries and Wages (decrease of €0.4m) due to retirements and non replacements , Depreciation (decrease of €0.4m) in line with lower capital spend, and finally Cost of Map Printing (decrease of €0.2m) in line with lower sales within the Tourist and Leisure sector.

Distribution and Administration Expenses amounted to €10.4m, representing a €0.5m or 5% increase over the previous year. Changes of note included pension payments ( increase of €1m, including pension lump sum entitlements for new retirees,) Salaries & Wages (decrease of €0.2m) due to staff retirements and non replacements, Training and Subscriptions (decrease of €0.07) and finally Office Premises Expenses (decrease of €0.16m).

The introduction of Accounting Standard FRS 17 in 2005 (Financial Reporting on Retirement Benefits) required an annual independent actuarial valuation and the inclusion in the Income and Expenditure Account, a cost for past pension service and interest on scheme liabilities and finally a representation of the total deferred pension liability in the Balance Sheet.

The overall cost included in the 2011 Income and Expenditure Account amounted to €9.1m representing a decrease of €0.9m over 2010. The Pension Liability at 31st December 2011 amounted to €147m inclusive of a 2009 increase of €14.5m to take account of a change in assumptions used for life expectancy of retirees i.e. males amended from 83 to 87 years and females from 87 to 90 years.

Service Level Agreement/Oireachtas Grant

The annual Service Level Agreement/ Grant in Aid received from the Department of Communications, Energy and Natural Resources amounted to €4.985m in 2011 and similar to the 2010 level. This result follows a trend of continuous reduction over the past number of years and is assisted by sales growth in a number of market segments, management of debtor days and a significant reduction in the Operating Cost Base.

In addition, a sum of €2.466m has been provided in 2011 towards superannuation costs.

Income and Expenditure Account

The total surplus recorded on the Income and Expenditure Account for 2011 amounted to €2.2m representing an increase of €1.4m over 2010. Significant savings within the Operating Cost Base contributed to this result.

22 Appendix A – Functions of OSi as described in the OSi Act 2001

The general function of OSi is to provide a national mapping service for the State. In this regard, it shall operate in the public interest by creating and maintaining the definitive national mapping and related geographic records of the State.

OSi’s functions shall include all tasks as are necessary to fulfil its general function:

(a) To maintain and develop the underlying physical infrastructure which is needed to support mapping applications

(b) To create and maintain mapping and related geographic databases for the entire State

(c) To provide mapping and related geographic information to the public and private sectors.

(d) To encourage and promote the benefits of the use of the national mapping and related databases

(e) To advise the Government, a Minister of the Government, bodies established by or under statute and other public sector organisations on matters relating to the policy and practice of survey, mapping and geographic information

(f) To represent the State at international level on matters relating to mapping and geographic information

(g) To provide the necessary technical support to the Chief Boundary Surveyor in the performance of his other duties

(h) To depict place-names and ancient features in the national mapping and related records and databases

(i) To protect Government Copyright.

23 Ordnance Survey Ireland

Financial Statements

Year ended 31 December 2011 Table of Contents

BOARD MEMBERS AND OTHER INFORMATION...... 2 Statement of Board members’ responsibilities...... 3 Statement oN internal financial control...... 4 REPORT OF THE COMPTROLLER AND AUDITOR GENERAL...... 5 ACCOUNTING POLICIES...... 7 INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2011...... 9 STATEMENT OF RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 31 DECEMBER 2011...... 10 BALANCE SHEET AS AT 31st DECEMBER...... 11

CASHFLOW STATEMENT...... 12 NOTES TO THE FINANCIAL STATEMENTS...... 13

1 BOARD MEMBERS AND OTHER INFORMATION

Board Members at 31 December 2011 Solicitor

Mr. Kevin Bonner – Chairman McCann Fitzgerald Solicitors Mr. Bill Attley Riverside One Mr. Liam Egan (Retired 3rd March 2011) Sir John Rogerson’s Quay Mr. Pat W. Fenton (Retired 3rd March 2011) Dublin 2 Mr. Michael D. Hayes (Retired 3rd March 2011) Mr. Anthony Murray Mr. Liam O’Farrell Mr. Noel Ryan Mr. Rory M. Scanlan Ms. Geraldine Stafford

Board members appointed in 2012

Mr. Ronan O’Reilly (Appointed Chairman 22nd May 2012) Ms. Anne Butler (Appointed 22nd May 2012) Mr. Robin Simpson (Appointed 22nd May 2012) Dr. Enda Howley (Appointed 22nd May 2012) Dr. Denis Kelliher (Appointed 22nd May 2012) Mr. Padraic Jordan (Appointed 22nd May 2012) Mr. Justin Gleeson (Appointed 22nd May 2012) Ms. Sandra Ryan (Appointed 22nd May 2012) Ms. Marian Coy (Appointed 22nd May 2012) Mr. Oliver Hickey (Appointed 19th June 2012)

Auditor banker

Comptroller and Auditor General Bank of Ireland Treasury Block Main Street Dublin Castle Blanchardstown Dublin 2 Dublin 15

2 3 4 Comptroller and Auditor General

Report for presentation to the Houses of the Oireachtas

Ordnance Survey Ireland I have audited the financial statements of Ordnance Survey I also seek to obtain evidence about the regularity of financial Ireland for the year ended 31 December 2011 under the transactions in the course of audit. Ordnance Survey Ireland Act 2001. The financial statements, In addition, I read all the financial and non-financial information which have been prepared under the accounting policies set in the annual report to identify material inconsistencies with the out therein, comprise the Accounting Policies, the Income and audited financial statements. If I become aware of any apparent Expenditure Account, the Operating Account, the Statement material misstatements or inconsistencies I consider the of Total Recognised Gains and Losses, the Balance Sheet, implications for my report. the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation Opinion on the Financial Statements is applicable law and Generally Accepted Accounting Practice in In my opinion, the financial statements, which have been properly Ireland. prepared in accordance with generally accepted Accounting Practice in Ireland, give a true and fair view of the state of Responsibilities of the Board Ordnance Survey Ireland’s affairs at 31 December 2011 and of its income and expenditure for the year then ended. The Board is responsible for the preparation of the financial statements, for ensuring that they give a true and fair view of the In my opinion, proper books of account have been kept by state of Ordnance Survey Ireland’s affairs and of its income and Ordnance Survey Ireland. The financial statements are in expenditure, and for ensuring the regularity of transactions. agreement with the books of account. Matters on which I report by exception Responsibilities of the Comptroller and Auditor General I report by exception if My responsibility is to audit the financial statements and report on them in accordance with applicable law. • I have not received all the information and explanations I required for my audit, or My audit is conducted by reference to the special considerations • my audit noted any material instance where moneys have which attach to State bodies in relation to their management and not been applied for the purposes intended or where the operation. transactions did not conform to the authorities governing My audit is carried out in accordance with the International them, or Standards on Auditing (UK and Ireland) and in compliance with • the information given in Ordnance Survey Ireland’s Annual the Auditing Practices Board’s Ethical Standards for Auditors. Report for the year for which the financial statements are prepared is not consistent with the financial statements, or Scope of Audit of the Financial Statements • the Statement on Internal Financial Control does not reflect An audit involves obtaining evidence about the amounts the Ordnance Survey Ireland’s compliance with the Code of and disclosures in the financial statements, sufficient to give Practice for the Governance of State Bodies, or reasonable assurance that the financial statements are free from • I find there are other material matters relating to the manner material misstatement, whether caused by fraud or error. This in which public business has been conducted. includes an assessment of • whether the accounting policies are appropriate to Ordnance Survey Ireland’s circumstances, and have been consistently applied and adequately disclosed • the reasonableness of significant accounting estimates made in the preparation of the financial statements, and • the overall presentation of the financial statements.

5

ACCOUNTING POLICIES 1. General

Ordnance Survey Ireland (OSi) was established by Statutory Instrument No. 73 of 2002, on 4th March 2002 under the Ordnance Survey Ireland Act, 2001.

2. basis for Accounting

The financial statements have been prepared on an accruals basis, except as stated below, under the historical cost convention and in accordance with generally accepted accounting practice. Financial reporting standards recommended by the recognised accounting bodies are adopted as they become applicable.

3. establishment Reserve

On Establishment day, 4th March 2002, the assets and liabilities of the Ordnance Survey were transferred to OSi on the basis of their values at that date and an amount equivalent to the net assets was credited to Reserves.

4. Income recognition

OSi receives an Óireachtas Grant from the Department of Communications, Energy and Natural Resources. This amount is shown in the Income and Expenditure Account in the period in which it is received. A Service Contract for the services to be provided in exchange for the Óireachtas Grant has been agreed with the Minister for Communications, Energy and Natural Resources.

Digital customers may be supplied by licensing of access to Ordnance Survey data. Revenue from the sale of licences is earned evenly over the life of the licence.

Digital customers may also be supplied with mapping data under annual contracts or for periods in excess of one year. Revenues under these contracts are recognised as obligations until the contracts are fulfilled. Costs in relation to these contracts are charged to the Income and Expenditure Account as incurred.

Other sales and revenues are recognised when the product has been despatched or the service provided.

Bad and doubtful debts are provided for on a review basis at the end of each year.

5. Superannuation

OSi operates defined benefit pension schemes which are funded annually on a pay as you go basis from monies available to it, including monies provided by the Department of Communications, Energy and Natural resources. Contributions deducted from staff salaries are not retained but returned to the Department with effect from 1st January 2011. In 2010 the contributions were retained.

Pension scheme liabilities are measured on an actuarial basis using the projected unit method. Scheme liabilities are presented separately on the balance sheet.

Pension benefits paid in respect of the year are charged in arriving at the Surplus/(Deficit) for the year after taxation.

A further pension charge comprising the current service cost, past service cost and the interest cost on the scheme liabilities less pension benefits paid in respect of the year is recognised as pension cost in the Operating Account for the year. An equivalent amount is charged to the Pension Reserve. Actuarial gains and losses arising from changes in actuarial assumptions and from experience surpluses and deficits are recognised in the statement of total recognised gains and losses for the year in which they occur and are charged to the Pension Reserve.

7 6. The National Topographic Database

The National Topographic Database is used to create and maintain digital mapping data. The database is of central importance to OSi’s activities and income generation. The National Topographic Database comprises two key elements – the database management system and the underlying topographical data (the database). The database management system is accounted for as computer equipment under tangible fixed assets (see note 8 to the financial statements). The existing asset as at th4 March 2002 was transferred into the opening balance sheet at cost less accumulated depreciation. Although OSi enjoys access to and usage of topographical data, the intellectual property rights to the data are retained by the Government of Ireland. Accordingly, no value has been ascribed to topographic data in these financial statements. OSi incurs expenditure on an ongoing basis maintaining and enhancing the topographic database. This comprises money spent on New Mapping and Continuous Revision activities. Such expenditure is charged to the Income and Expenditure Account as incurred.

7. Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is calculated in order to write off the cost of tangible fixed assets by equal annual instalments. The estimated useful lives by reference to which depreciation has been calculated are as follows: Fixtures and fittings 3 to 10 years Motor vehicles 5 years Computer equipment 4 years

8. Stocks

Stocks comprise printed maps and supplies and are stated at the lower of cost and net realisable value.

9. Foreign currencies

Transactions denominated in foreign currencies are translated into euro at the exchange rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into euro at the exchange rates ruling at the balance sheet date and resulting gains and losses are included in the Income and Expenditure Account for the period.

10. Investment in GeoDirectory

Investment in An Post GeoDirectoty Limited is recorded in the balance sheet as the total cost of the investment. Ordnance Survey Ireland’s share of profits are included in the Income and Expenditure Account in respect of post acquisition profits and are taken from the latest audited financial statements made up to the balance sheet date.

8 9 10 11 12 nOTES TO THE FINANCIAL STATEMENTS

2011 2010 € € 1. Sales 3,627,484 3,543,102 Long term contracts - County Councils 10,518,862 11,496,934 Long term contracts - Utilities and government bodies 5,390,570 5,950,432 Map Sales including annual licensing 19,536,916 20,990,468

2. Cost of Production and Sales 2011 2010 € € Cost of production (New Mapping and Continuous Revision) Salaries & Wages 9,704,549 10,058,324 IT costs 2,005,323 1,958,514 Depreciation 1,235,063 1,635,737 Outsourced mapping 0 1,452 Flight and maintenance costs 471,316 582,307 Travel & Subsistence 334,861 312,649 Vehicle Running costs 222,190 217,502 Contractor costs 31,380 168 Incidental expenses 26,957 30,761 Stationary 23,268 13,937 Field equipment 21,262 8,399 Plotter costs 24,153 20,365 14,100,322 14,840,115 Cost of Sales: Opening Stock 242,452 418,079 Outsourced printing costs 412,268 340,668 Closing stock as at 31 December (303,551) (242,452)

Total Cost of Production and Sales 14,451,491 15,356,410

13 nOTES TO THE FINANCIAL STATEMENTS – Continued

3. new Mapping and Continuous Revision Costs

As described in paragraph 6 to the accounting policies, expenditure incurred on enhancing and maintaining the topographic database is charged to the Income and Expenditure Account in the period in which incurred. The amounts charged to the Income and Expenditure Account and disclosed in Note 2 are analysed as follows:

2011 2010 € €

New Mapping 7,120,660 7,494,100 Continuous Revision 6,979,662 7,346,015 14,100,322 14,840,115

Osi estimates that the topographic database will be renewed through continuous revision over a five- year cycle.

4. Other operating income

2011 2010 € €

Deposit interest 14,036 2,800 Other income 12,193 12,104 26,229 14,904

14 nOTES TO THE FINANCIAL STATEMENTS – Continued

5. Distribution and Administration Costs 2011 2010 € € Salaries & Wages 5,633,913 5,907,270 Pension Payments 2,476,928 1,467,937 Travel & Subsistence 71,136 74,296 Training & subscriptions 280,594 208,995 Marketing & Promotions 161,893 179,638 Incidental expenses 67,649 91,404 Bank Charges 28,864 24,072 Office premises expenses 353,560 509,004 General Insurance 84,400 85,473 Light & Heat 255,863 275,789 Cleaning 162,102 173,476 Postage & Telephone 203,674 225,158 Movement in provision for bad debts (92,742) (42,258) Depreciation 213,348 217,822 Consultancy 109,715 182,411 Contract photography (1,515) 8,297 Legal & Professional costs 31,591 19,329 Directors’ fees 61,868 81,343 Outsourced payroll services 60,604 70,750 Audit fees 34,000 33,064 Stationary and office equipment 34,075 33,631 Bad Debts 114,989 72,325 10,346,509 9,899,226

OSi occupies premises rent free in the Phoenis Park, Dublin which is provided by the Office of PublicW orks. In December 2003 the Minister for Finance announced that OSi Headquarters would be relocating to Dungarvan, Co. Waterford. However, on the 17th November 2011 the government announced that this decentralisation proj- ect was one of those to be cancelled. Included above is an amount of €17,009 in respect of entertainment expenditure which includes staff social club contributions, retirement presentation functions and employee team building exercises.

6. Staff costs and employee information

2011 2010 € € Wages and salaries (including pension contributions) 17,077,456 16,685,423 Social insurance costs 737,934 748,108 17,815,390 17,433,531

€940,139 of pension levy has been deducted and paid over to the Department of Communications, Energy and Natural Resources. €408,929 of employee superannuation has been deducted and paid over to the Department of Communications, Energy and Natural Resources.

15 nOTES TO THE FINANCIAL STATEMENTS – Continued

A bonus of €20,000 (2010: €20,000) was paid to one employee based on agreed marketing and business development performance targets and in addition, bonuses amounting to €10,000 in total was paid to three employees based on specific achievements relating to organisational goals. The payments of these bonuses were not in accordance with section 5 of the Financial Emergency Measures in the Public Interest (No.2) Act, 2009. The recovery of the bonuses as required under the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009 are not being sought from the employees concerned.

The average number of persons employed during the period was 281 (2010: 294).

7. Tax on surplus/(deficit) on ordinary activities

There is no tax liability arising from the year’s trading activity.

8. Tangible Assets Motor Computer Fixtures & Total Vehicles Equipment Fittings € € € € Cost or valuation At 1st January 2011 552,459 27,228,293 1,652,185 29,432,937 Additions 32,245 2,191,247 10,882 2,234,374 Disposals = = = = At 31st December 2011 584,704 29,419,540 1,663,067 31,667,311

Accumulated depreciation At 1st January 2011 479,810 25,746,873 763,426 26,990,109 Charge for the period 48,175 1,235,063 165,173 1,448,411 Disposals = = = = At 31st December 2011 527,985 26,981,936 928,599 28,438,520

Net book amount At 31st December 2011 56,719 2,437,604 734,468 3,228,791 At 31st December 2010 72,649 1,481,420 888,759 2,442,828

Note : IT equipment includes equipment costing €25.6m that has a written down value of nil.

16 nOTES TO THE FINANCIAL STATEMENTS – Continued

9. Stocks 2011 2010 € € Consumables 58,382 57,166 Map Stocks 245,169 185,286 303551 242,452

10. Debtors 2011 2010 € € Amounts falling due: Trade debtors 2,283,561 2,271,631 Other debtors 35,376 30,611 Prepayments 386,550 933,376 Financial Asset 19,788 - Amount recoverable on contracts 1,198,830 300,366 3,924,105 3,535,984 Trade debtors are net of bad debt provision of €100,000 (2010 €192,742)

11. Creditors - amounts falling due within one year 2011 2010 € € Trade creditors 132,274 301,541 VAT 873,377 725,428 Income Tax deducted under PAYE 253,804 157,638 Pay Related Social Insurance 81,361 114,205 Other creditors 137,332 136,177 Accruals 1,022,516 967,187 Payment/invoicing in advance on long-term contracts 5,800,626 6,527,317 8,301,290 8,929,493

12. pension Costs (a) Analysis of the amount charged in arriving at the operating surplus/(deficit) for the year.

2011 2010 € € Charged to Income and Expenditure Account 2,477,000 1,902,000 Charged to Operating Account Current Service costs 4,000,000 4,400,000 Interest on Scheme Liability 7,600,000 7,500,000 Benefits Paid (2,477,000) (1,902,000) Pension Cost Charged to Operating Account 9,123,000 9,998,000 Total charged in arriving at Operating Surplus/(Deficit) 11,600,000 11,900,000

17 nOTES TO THE FINANCIAL STATEMENTS – Continued

(b) Analysis of the movement in liability during the year 2011 2010 € € Scheme liability at 1 January 138,000,000 137,000,000 Current service cost 4,000,000 4,400,000 Interest costs 7,600,000 7,500,000 Actuarial loss/(gain) (123,000) (8,998,000) Pensions paid in year (2,477,000) (1,902,000) Scheme liability at 31 December 147,000,000 138,000,000

(c) History of experience gains and losses 2011 2010 € € Experience losses/(gains) on sheme liabilities Amount (€) (123,000) (8,998,000)

(d) OSi operates defined benefit Staff Superannuation and Spouses’ and Children’s Contributory Pension Schemes. Superannuation entitlements arising under these schemes are paid out of OSi current income and are charged in arriving at the Surplus/(Deficit) on the Income and Expenditure account in the year in which they become payable. No separate fund is maintained and no assets are held to finance the payment of pensions and gratuities. An actuarial valuation at 31ST December 2011 determined a valuation of pension liability in respect of serving and retired staff in the sum of €147m (€138m at 31st December 2010). At vesting date the liability was €62m. The results are based on the actuarial valuation of the pension liabilities as at 31 December 2011. This valuation was carried out by a qualified independent actuary for the purposes of the accounting standard, Financial Reporting Standard No.17 – Retirement benefits (FRS 17)

The main financial assumptions used were: At At At 31/12/11 31/12/10 31/12/09 Discount rate 5.5% 5.5% 5.5% Rate of increase of salaries 4.0% 4.0% 4.0% Rate of increase in pension 4.0% 4.0% 4.0% Inflation 2.0% 2.0% 2.0%

Average future life expectancy according to the mortality tables used to determine the pension liabilities

2011 2010 2009 2008 Male aged 65 22 22 22 18 Female aged 65 25 25 25 22

(e) Departure from FRS 17 presentation

The financial statements disclose both the surplus/(deficit) for the year after charging pension benefits paid in respect of the period and the surplus/(deficit) after providing for all pension costs as determined under FRS17. The Board believes that this presentation gives a fairer presentation of OSi’s financial performance having re- gard to the fact that its pension schemes are operated on a pay-as-you-go basis and the fact that its funding from the State is not interested to enable OSi to pre-fund.

18 nOTES TO THE FINANCIAL STATEMENTS – Continued

(f) Comparative Figures

The presentation of the pension funding on the Balance Sheet has been changed to better reflect the funding arrangement.

13. board Members’ Emoluments 2011 2010 € € Emoluments: -for service as Board members Mr. Kevin Bonner 11,954 11,989 Mr. Bill Attley 7,684 7,706 Mr. Liam Egan 1,270 7,706 Mr. Pat Fenton 1,270 7,706 Mr. Michael D. Hayes 1,270 7,706 Mr. Anthony Murray 7,684 7,706 Mr. Liam O’Farrell 7,684 7,706 Mr. Noel Ryan 7,684 7,706 Mr. Rory M. Scanlon 7,684 7,706 Ms. Geraldine Stafford 7,684 7,706 - for other services = = 61,868 81,343

The Board members incurred expenses of €13,304 during 2011, broken down into travel expenses of €11,704 and subsistence expenses of €1,600.

There were no loans to, or transactions with Board Members in the year ended 31st December 2011. The Board adopted procedures in accordance with guidelines issued by the Department of Finance in relation to the disclosure of interests by Board members and these procedures have been adhered to in the year. There were no transactions in relation to the OSi’s activities in which Board Members’ had any beneficial interest.

The 2011 annual basic salary of the Chief Executive Officer of Ordnance Survey Ireland was €147,659. Other remuneration costs for 2011 included the cost of a company car subject to a BIK of €14,771. Employer superannuation contributions were €Nil for 2011. No performance related bonus was paid to the Chief Execu- tive Officer in 2011, however a deferred bonus of €39,395 has been provided for in relation to 2008, €36,915 in relation to 2009 and €36,915 in relation to 2010. Interest at DIBOR plus 1% per annum will accrue (total of €4,400) on the bonuses. The superannuation entitlements of the CEO do not extend beyond the standard entitle- ments of the public sector defined benefit superannuation scheme.

Salary overpayments of €23,376 to the Chief Executive Officer occurred due to time taken to resolve matters re- lated to the application of the Financial Emergency Measures in the Public Interest (No 2) Act, 2009 to the Chief Executive Officer of OSi. The recoupment of salary commenced on 28th October 2011 on foot of an instruction from the Chairman and all monies will be recouped by December 2012.

14. Dividend A total dividend for 2011 of 20% of the surplus on the income and expenditure account was proposed at the Board meeting of 1st March 2012. The final dividend will be recognised as a charge to reserves in the year ending 31st December 2012.

19 NOTES TO THE FINANCIAL STATEMENTS – Continued

15. Financial Asset

On 27th September 2011 Ordnance Survey Ireland purchased 49 ordinary shares in An Post GeoDirectory Limited at €1.25 per share, giving a total investment of €61. For the year ended 31st December 2011 An Post GeoDirectory Limited recorded a profit after taxation of €161,534 of which a minority interest amounting to €19,788 is attributable to Ordnance Survey Ireland. An Post Geodirectory Limited was incorporated in Ireland in 1995 where OSi and An Post each license on a non-exclusive and non-transferable basis certain intellectual property rights to the Company. An Post Geodirectory Limited then merges each party’s Background Intellectual Property to form a product which in turn is licensed to third parties. During the year, Ordnance Survey entered into a number of transactions with a An Post GeoDirectory Limited to a value of €957,078 (excluding vat) relating to contracts for mapping services

2011 Financial Assets € Investment 61

16. post balance sheet events

There are no events of significance.

17. Ordnance Survey Ireland has the use of the following office premises:

Ordnance Survey Ireland Head Office, Phoenix Park, Dublin 8 Cork Regional Office, Central Statistics Office, Lough Mahon Technology Park, Skehard Road, Cork Ennis Regional Office, Government Buildings, Kilrush Road Ennis, Co. Clare Kilkenny Regional Office, Government Offices, Hebron Road, Kilkenny Longford Regional Office, Government Buildings, Ballinalee Road Longford Sligo Regional Office, Westward Town Centre, Bridge Street, Sligo Tuam Regional Office, Airglooney House, Ballygaddy Road, Tuam, Co. Galway

18. Going Concern

The balance sheet discloses a substantial deficit arising out of the adoption of FRS17. Notwithstanding this the Board believes that OSi will have sufficient resources available to it in the foreseeable future either from its commercial activities or by way of State grant to continue its operations and discharge its statutory mandate. In the circumstances the Board believes that it continues to be appropriate to prepare the financial statements on the going concern basis.

19. Commitments

(a) Operating Leases Ordnance Survey Ireland has entered into operating leases for three vehicles. The cost in 2011 was €39,435. Amounts due within one year total €30,193. There are no leases on any properties.

(b) Capital Commitments OSi has contracted for future capital expenditure of €2m on a new integrated mapping database, of which €0.7m has been paid by the end of 2011.

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